Eastern Bank posts record Tk901cr profit in 2025, rewards shareholders with 28% dividend

Eastern Bank PLC (EBL) has reached a significant milestone
in its financial journey, posting a record standalone profit after tax of Tk901
crore for the year 2025.
This achievement represents a
robust 20% year-on-year growth, underscoring the bank's consistent earnings
momentum and a resilient business model that has successfully navigated an
increasingly challenging operating environment, according to a press
release.
The bank's board of directors, in a
meeting held today (15 April), approved the annual audited financial statements
and recommended a generous payout for its shareholders.
The board proposed a 25% cash
dividend and a 3% stock dividend for the year ending December 2025, a shift
from the previous year's distribution of 17.5% cash and 17.5% stock.
On a consolidated basis, which includes the performance of its subsidiaries,
the bank's net profit after tax reached Tk834 crore, marking an even more
impressive growth of 26% compared to the previous year.
To finalise these recommendations
and review the year's performance, the bank has scheduled its Annual General
Meeting (AGM) for 11 June, with 6 May set as the record date for determining
shareholder eligibility.
The record-breaking profitability
is the culmination of a half-decade of steady growth; EBL's consolidated profit
has climbed consistently from Tk480 crore in 2021 to the current Tk834 crore,
reflecting a clear trajectory of sustainable value creation.
The bank's strong bottom line was
driven by prudent balance sheet management and disciplined risk practices, said
the bank in its statement.
Throughout 2025, EBL continued to deliver robust growth across all its key
financial indicators. Total deposits rose by 21.6% to reach Tk55,645 crore,
while loans and advances increased by 16.1% to settle at Tk47,704 crore by the
end of the year.
Perhaps the most striking growth
was observed in the bank's investment portfolio, which recorded a significant
surge of 47.8%, reaching Tk21,147 crore. This surge highlights the bank's
strategic move to optimise its asset allocation in a fluctuating market.
Asset quality remains the strongest
pillar of EBL's operational success. While the broader banking industry in
Bangladesh has struggled with high levels of defaulted loans – averaging around
30.60% – EBL has managed to bring its non-performing loan (NPL) ratio down to
just 2.24%. This figure reflects a level of credit discipline and risk
management that is rare in the local market, according to the press release.
Furthermore, the bank maintained
full compliance with all regulatory requirements, including BASEL III liquidity
standards, ensuring it remained well-capitalised and resilient against
potential economic shocks.
This financial stability is
reflected in the bank's solo earnings per share (EPS), which rose to Tk5.65
from a restated Tk4.70 in 2024, and its solo net asset value (NAV) per share,
which increased to Tk31.86 from Tk27.16.
The bank's profitability indicators
also showed sustained strength, with the return on equity (ROE) improving to
19.13% from 18.57% in the previous year. Efficiency remained a priority, as
evidenced by a cost-to-income ratio of 40.36%, which is among the lowest in the
industry.
To further support future growth
and institutional resilience, the bank enhanced its capital base, with the solo
capital to risk-weighted assets ratio (CRAR) increasing to 15.49% from 15.11%
in the prior year.
As EBL heads into 2026, its record
performance reaffirms its position as a market leader, well-equipped to advance
its strategic priorities while maintaining a focus on sustainable growth and
long-term value for its stakeholders, read the press release.
















